Auto MK.com » Plants/Manufacturing » Autoline on AutoMK with John McElroy

Autoline on AutoMK with John McElroy

mzman

Newbie

Rank: 1

Send P.M.
Buddy
Offline

1^# A A A Post at 6-14-2008 13:35 Show author

Autoline on AutoMK with John McElroy

FORD'S AMBITIOUS MAKE-OVER

It could be the most dramatic retooling effort since the early days of World War II, when Detroit earned its nick name as the Arsenal of Democracy. Word leaked out yesterday that Ford is calling its plant managers and top union leaders to the company's headquarters in Dearborn, Michigan to debrief them on an ambitious plan to revamp its manufacturing plants. Ford wants a crash program to change over many of its truck plants to produce fuel-efficient passenger cars.

The urgency conveyed by this development (the company will not yet officially confirm it) is due to the surge in gasoline and diesel prices that have decimated truck sales. Never has there been seen such a dramatic shift in customer demand in such a short period of time. Last month sales for the Detroit Three absolutely collapsed, and when sales are tallied for this month, the carnage is going to be worse.

Realizing that any delay could permanently cripple the company, Ford's CEO Alan Mullaly decided to embark on a bold effort to achieve a rapid change over. Hence, the unprecedented call to bring all the plant managers and top union reps together for an emergency meeting.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to AutoMK readers. Follow the jump to continue reading this week's editorial.

The fastest way for Ford to revamp its North American line-up of vehicles is to tap into the fuel-efficient products it already makes overseas, particularly in Europe. But rather than import those vehicles, which would be too expensive due to the strong Euro and weak dollar, Ford wants to manufacture them in the U.S. All it has to do is duplicate the dies, fixtures, tools and jigs needed to make those cars. That still represents a massive financial commitment, but it's a lot cheaper and faster than any other alternative.

Ford already planned to build the next generation of European Focus and Mondeo models here, but undoubtedly it's looking at other products, as well. The Kuga and S-Max would seem to be logical candidates, and possibly the Fusion (which bears no resemblance to the Fusion sold in North America). There are also plans to drop the Econoline van altogether and replace it with the Transit.

Gallery: 2008 Ford Mondeo

Last News:

1-8-2009 11:04 Scion xB Release Series 6.0 priced, coming to 2009 NAIAS Read...
1-8-2009 11:04 Austrian design students envision range of KTM concepts Read...
1-8-2009 11:04 Bush administration defers CAFE decision to Obama Read...
1-8-2009 11:04 KORS Design imagines Fisker Karma S \ Sunset\  Concept ahead of Detroi ... Read...
1-8-2009 10:57 Putting V8s In Volvos Is Like Eating Peanuts: Future Drag Race Car Plucked From ... Read...
1-8-2009 10:57 CES: Ford Upgrades Sync With Turn-By-Turn Navigation Read...
1-8-2009 10:57 Spy Photos: 2010 Porsche 911 GT3 RS Caught With Its Pants Completely Down Read...
1-8-2009 10:57 Spy Photos: 2010 Jaguar XK Spied Prowling English Countryside Read...
1-8-2009 10:57 Commenter Of The Day: Urban Blight Edition Read...
1-8-2009 10:57 The 1978 Datsun Stanza: Proving Australian Hoonage Potential The Best Way Possib ... Read...
1-8-2009 10:57 Detroit Auto Show: Crafting The Authentic Swedish Crystal Console Of The Volvo S ... Read...
1-8-2009 10:57 Volvo FH16: Volvo FH16, Worlds Most Powerful Truck, Unveiled In Europop Music Vi ... Read...